For couples considering early retirement, the financial side is only half the challenge. The emotional uncertainty—the “what if we run out of money?” fear—can be just as paralyzing. And when there’s an age gap between spouses, the planning becomes even more nuanced.

That’s the case for Mark, age 56, and his wife Linda, age 49. With $2.1 million saved, a paid-off home, and a clear desire for more freedom, Mark was ready to leave the workforce. But Linda, still a few years from 50 and not yet eligible for Social Security, posed a question many couples face:

“Can we afford for you to retire now—and still support both of us for 40+ years?”

Let’s break down their financial situation and see what’s possible.

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Financial Snapshot

• Mark’s Age: 56
• Linda’s Age: 49
• Total Retirement Savings: $2.1 million
  • $1.25M in Mark’s traditional IRA
  • $547K in Linda’s IRA
  • $275K in a joint brokerage account
  • $28K in cash
• Home: Fully paid off, valued at $600K
  • Planning to sell in 2028 (when Mark turns 59) and net $500K
• Social Security:
  • Mark: $4,046/month starting at age 67
  • Linda: $2,023/month starting at age 67 (spousal benefit)

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Retirement Planning Questions

With one spouse nearly a decade younger, we explored:

1. How much can they spend each year—starting now?
2. What does income look like before and after Social Security?
3. How long will their money last with a 40+ year retirement horizon?
4. What kind of investment return do they need to make it work?

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✅ Sustainable Annual Spending

With a conservative 4% real return (after inflation) and a retirement span that stretches to age 95 for Mark and 88 for Linda, their portfolio can support:

$129,687 per year (in today’s dollars) from now through the end of their retirement.

This covers lifestyle spending, healthcare, travel, and even taxes—without needing to go back to work.

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Bridging the Gap to Social Security

One of the biggest challenges in this plan is funding the first 11–18 years without Social Security benefits. Here’s how it works:

• From ages 56–66, all spending is drawn from their portfolio.
• In 2028, they sell their home and add $500K to their nest egg.
• At age 67, Mark begins collecting $4,046/month in Social Security.
• When Linda turns 67 (Mark will be 74), she begins receiving $2,023/month.

Once both payments begin, their total Social Security benefit reaches $72,828 per year, covering over half of their annual spending. As a result, their portfolio withdrawals drop significantly.

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Withdrawal Rate Over Time

Year	Mark’s Age	Linda’s Age	Portfolio Balance	Annual Withdrawal	Withdrawal Rate
Year 1	56	49	$2.10M	$129,687	6.2%
Year 4	59	52	$2.30M (after home sale)	$129,687	5.7%
Year 11	67	60	$1.69M	$56,860 (after SS)	3.4%
Year 24	80	73	$0.68M	$56,860	8.3%
Year 35	91	84	$0.22M	$56,860	25.3%
Year 40	95	88	~$1,745	$56,860	Spent down

By age 95, they’re nearly out of funds—but only after a full 40-year retirement.

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Investment Return Needed

This plan assumes a 4% net return above inflation. If they only earn 2% real return, they’ll either need to spend less or stretch out withdrawals further. But if they maintain reasonable growth in a diversified portfolio, the math holds up.

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Final Thoughts

Early retirement is possible—even when one spouse is only 49. But it requires:

• A carefully timed drawdown strategy
• A bridge to Social Security income
• Close attention to investment returns and market risks

Mark and Linda’s case shows that $2.1 million can work—if it’s managed wisely. Their success hinges not just on what they’ve saved, but how they spend, invest, and adapt along the way.

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